As the wage rate increases, the substitution effect causes workers to supply more time to market work and the income effect causes them to supply less time to market work
a. True
b. False
A
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Which of the following is true?
a. Patents reduce a firm's incentive to develop new products. b. Patents are given for new works of art or literature. c. Patents give a permanent exclusive right to produce a new good. d. Patents give a temporary exclusive right to produce a new good. e. Patents guarantee economic profits.
If expected inflation were 2%, and teh real interest rate was 5%, what sector would be worse off if the actual inflation rate turned out to be 6%
a. Lenders. b. Borrowers. c. Both. d. None.
Which of the following represents a preventative measure against bank runs?
A. The President of the United States can order banks to pay depositors. B. The FDIC provides deposit insurance. C. The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds. D. None of these is correct.
Suppose that your demand schedule for CDs is shown in the table below.
A) Your total utility from 4 CDs would be _____.
B) Your marginal utility from the fourth CD would be _____.
C) If the price were $2, your consumer surplus would be _____.